02-18-2017, 07:18 AM
gymchamp. Yes as long as the company is able to continue to grow steadily, that shareprice will recover at some point. But that's the thing... not all companies do that. It's easy to pick 3 companies that are hitting all time highs now and say "look at that dip there, if you sold you made the wrong choice" but you can just as easily find companies that were once generating a nice profit but have been on the decline ever since.
I certainly agree with the phrase "buy quality and hold forever" but as I can't predict the future I do sometimes end up selling some of my holdings (sometimes for a profit, sometimes for a loss) simply because the situation and the companies in question change. A company that was high quality a few years ago might not be high quality today. Nokia is a great example that comes to mind... a lot of people made a lot of money with Nokia back in the day but right now it certainly isn't the company it used to be... and I'm not sure if it ever will be.
I certainly agree with the phrase "buy quality and hold forever" but as I can't predict the future I do sometimes end up selling some of my holdings (sometimes for a profit, sometimes for a loss) simply because the situation and the companies in question change. A company that was high quality a few years ago might not be high quality today. Nokia is a great example that comes to mind... a lot of people made a lot of money with Nokia back in the day but right now it certainly isn't the company it used to be... and I'm not sure if it ever will be.